The PGA Tour continues to respond to potential threats to its future activities by increasing the money its players are paid throughout the year. According to a note written by PGA Tour commissioner Jay Monahan obtained by No Laying Up, the FedEx Cup, the Player Impact Program, and a handful of tournaments all experience financial reshuffles in 2022.
Here are the details.
- FedEx Cup bonus drops from $ 60 million to $ 75 million
- FedEx Cup winner receives $ 18 million (previously $ 15 million)
- FedEx St. Jude Invitational and BMW Championship scholarships increase to $ 15 million (previously $ 9.5 million)
- Genesis Invitational, Arnold Palmer Invitational, Memorial Tournament, and WGC-Dell Technologies Match Play scholarships go to $ 12 million (previously $ 9.3 million)
- Player Impact Program grows from $ 40 million to $ 50 million
- Comcast Business Tour Top 10 From $ 10 Million To $ 20 Million
- Total tournament prizes in 2022 drops from $ 367 million to $ 427 million
- The average scholarship in 2022 will be $ 9.1 million, an increase of over $ 1 million from 2021
Monahan also clarified that PGA Tour players will receive 55% of the $ 1.52 billion Tour revenue in 2022. The remaining 45% will go to tournament-related expenses, employee expenses and TPC network expenses.
This means that $ 838 million will be distributed to players. Of this amount, 80% is in the form of cash prizes, various bonus programs as well as benefits for Tour members. The remaining 20% ($ 153 million) comes from marketing partners and corporate marketing partners (that is, mainly apparel and equipment companies) which are distributed to various players, and Monahan’s expects this to double (!) over the next two years.
Again, this is all a Tour’s response to external threats like the Premier Golf League – which spokesperson Andy Gardiner, explained PGL’s business model in a recent No Laying Up podcast – and the Super Golf League, which should evolve from LIV Golf Investments, where Greg Norman is the new CEO. LIV Golf Investments is investing $ 200 million in the Asian Tour over the next 10 years and wants a super league to grow from there.
This is all extremely confusing, even for those who pay close attention to it. Basically, the PGA Tour is trying to shore up the walls of its castle with a myriad of militias trying to break through its exterior. In the short term this should work as the Tour is pumping a ton of cash into the system. It remains to be seen whether there is long-term durability and what that durability looks like.
Still, Monahan remains confident in his product.
“We are positioned to grow faster over the next 10 years than we have at any time in our existence,” he wrote, “and we remain focused on strengthening our core product and investing in our members. “